The Wall Street Journal - 09.03.2020

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A16| Monday, March 9, 2020 THE WALL STREET JOURNAL.


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“Between being totally aloof or
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THE WALL STREET JOURNAL

Back to the Future 10 Years After Deepwater?


April marks the 10-year anniversary
of the Deepwater Horizon oil-spill di-
saster off the Gulf Coast. The environ-
mental catastrophe, which caused more
than $65 billion in damage and eco-
nomic losses for families and busi-
nesses from Florida to Texas, was the
result of poor adherence to existing
safety rules. In its wake, new standards
were implemented to improve the
safety of deep-water extraction. Now
the Trump administration is literally
allowing the industry to rewrite those
rules and deleting evidence that federal
engineers opposed the industry’s roll-
back wish list (“Warnings on Oil-Drill-
ing Rule Deleted,” U.S. News, Feb. 27).
This comes as no surprise. Key
agencies such as the Environmental
Protection Agency and the Depart-
ment of Interior are run by former en-

ergy-industry insiders. The Trump ad-
ministration has rolled back more
than 100 public-health and environ-
mental protections on the books. This
rollback of offshore-drilling standards
is cruelly timed to coincide with the
10th anniversary of the worst indus-
trial disaster we’ve seen. Millions of
Americans living along the Gulf Coast
still recovering from the Deepwater
Horizon disaster will now again be ex-
posed to the risk of another disaster
that could destroy their income, their
jobs and the environment.
CAROLM.BROWNER
East Wallingford, Vt.
Ms. Browner is former administra-
tor of the Environmental Protection
Agency and former director of the
White House Office of Energy and Cli-
mate Change Policy.

Real Diversity: More Than One Dimensional


Regarding Barton Swaim’s review
of Russell Jacoby’s “On Diversity”
(Bookshelf, March 3): Diversity today
usually means little more than skin
color. Such emphasis ignores true va-
riety within and between human
communities. Recently my brother
commented to me that our high
school had not been at all heteroge-
neous. Well, in skin pigmentation, no.
In terms of class, absolutely. Our edu-
cational milieu ran the socio-eco-
nomic gamut from old Yankee money
and Ivy League-bound progeny to
those pupils whose parents had eked
out a living at the paper mill or the
fish factory—as they themselves were
destined to do.
Similarly, the chattering class be-
stows my adopted New Hampshire a
quadrennial first-in-the-nation pri-
mary, ignoring its alleged lack of di-

versity, meaning melanin deposits
only. Yet this state owns the highest
per capita percentage of college stu-
dents and, not surprisingly, the asso-
ciated ratio of student debt. The pro-
portion of military veterans is much
higher than in New York or Califor-
nia. New Hampshire is one of the
states with the highest proportion of
elderly residents, one of the least
churchgoing and most heavily for-
ested. There are many ways of mea-
suring diversity.
RAYMONDJ.BROWN
Londonderry, N.H.

There’s a time for diversity and a
time for uniformity—except in pro-
gressive thought. It is antithetical to
have diversity in perfection.
STEPHENBORKOWSKI
Pittsburg, Texas

Pepper ...
And Salt

Modi Is Transforming India’s Foreign Affairs


Jairaj Devadiga overlooks foreign
policy as a watershed of rupture be-
tween the worldview of India’s first
prime minister, Jawaharlal Nehru,
and of its current prime minister, Na-
rendra Modi (“Modi Bashes Nehru,
but Rejects Only His Good Ideas,” op-
ed, Feb. 24). Nehru’s India historically
prided itself as a quixotic vanguard of
the Nonaligned Movement, frequently
subordinating its own geopolitical in-
terests to ethereal notions of antico-
lonial, Third World brotherhood.
Nehru gave a swift diplomatic recog-
nition to Mao’s China in 1950 only to
witness the Chinese annexation of Ti-
bet and, later, part of Kashmir.
Under Mr. Modi, India is increas-
ingly comfortable with great-power
competition, subscribing to hard-
nosed realpolitik. Mr. Modi has en-
sconced the primacy of an open and
free Indo-Pacific maritime area by
joining the Quadrilateral Security Di-
alogue, an informal defense arrange-
ment consisting of the U.S., Australia
and Japan. As a growing sign of In-
dia’s commitment to preserving the
regional balance of power, the Indian
military thwarted Chinese encroach-

ments into Bhutan in 2017.
Additionally, despite decades of re-
flexive acrimony between Israel and
the Palestinians, India is now Israel’s
largest arms importer. The South
Asian nation has even voted at the
United Nations to isolate Palestinian
groups with ties to the terror organi-
zation Hamas.
For these reasons, Narendra Modi
should be deemed a deeply transfor-
mative figure in foreign affairs.
NATHANPUNWANI
Los Angeles

The Senate and the Judiciary


C


huck Schumer says he regrets the words
he used to threaten Supreme Court Jus-
tices Neil Gorsuch and Brett Kavanaugh
last week, but perhaps we
should thank him for the mo-
ment of candor. The Senate
Minority Leader has reminded
the country of the threat that
a Democratic Senate poses to
judicial independence.
Mr. Schumer’s threats were cruder than
most, but they are part of a larger Democratic-
progressive project to politicize the judiciary
and delegitimize the current Supreme Court.
The effort has included opposing nearly all of
Donald Trump’s judicial nominees, threatening
Justices with punishment if they issue certain
rulings, stigmatizing judges who belong to the
Federalist Society, and even threatening to
change the structure of the High Court.
iii
This goes well beyond the familiar criticism
of Supreme Court rulings they don’t like. And
well beyond the popping off that President
Trump has done about specific judges in spe-
cific cases. Mr. Trump is wrong to do so, but like
so much of what he says it has had no legal ef-
fect. The judges ignore him, as they should, and
so do Senate Republicans.
The GOP has reshaped the federal judiciary
in the last three years the constitutional way.
Mr. Trump has nominated competent judges,
and the Senate has confirmed most of his
choices. No one should be surprised since Mr.
Trump promised to do this during the 2016
campaign, relying on the advice of conservative
legal advisers.
Democrats are still angry that Mitch McCon-
nell denied a Senate hearing to Merrick Gar-
land, President Obama’s nominee to replace An-
tonin Scalia, in 2016. That was political
hardball. But no less than Mr. Schumer tipped
in 2007 that he would have done the same had
George W. Bush had a Supreme Court opening
to fill in his final year as President.
“We should not confirm any Bush nominee
to the Supreme Court, except in extraordinary
circumstances,” Mr. Schumer declared in a July
2007 speech to the American Constitution Soci-
ety. Mr. McConnell followed that Schumer prec-
edent. He gambled the seat on the results of the
2016 election, when voters knew the future of
the courts was on the ballot.
That future is again at stake, and Senate con-
trol arguably matters more to the judiciary than
does the presidential race. Even if Mr. Trump
is re-elected, a Senate Democratic majority
would end the confirmation of judges who be-
lieve in constitutional originalism. Senate Dem-
ocrats would refuse to confirm anyone associ-
ated with the Federalist Society or other
conservative groups. And a Democratic Presi-
dent and Senate might not settle merely for
nominating and confirming liberal judges.


The best indicator of Democratic intent is
Sheldon Whitehouse, the Rhode Island Senator
famous for excavating Brett Kavanaugh’s high-
school yearbook. In January
2019, Mr. Whitehouse wrote to
Chief Justice John Roberts to
protest that the Court ac-
cepted friend-of-the-court
briefs from “special interest
groups that fail to disclose
their donors.” He said if the Court didn’t cease
and desist, “a legislative solution may be in or-
der.” That’s a political threat.
Mr. Whitehouse repeated the charge last
month in an amicus brief with three other Sena-
tors in a case challenging the structure of the
Consumer Financial Protection Bureau. The
brief includes an appendix list of “a small and
powerful cabal of self-interested entities” that
dare to file amicus briefs disagreeing with Mr.
Whitehouse on legal and policy issues.
Meanwhile, the Committee on Codes of Con-
duct of the U.S. Judicial Conference issued a
draft opinion in January that would bar judges
from belonging to the Federalist Society but not
to the American Bar Association. A member of
that committee is John McConnell, a federal
district judge in Rhode Island who was pro-
moted for the bench by none other than Shel-
don Whitehouse.
In August last year, Mr. Whitehouse and four
other Senators—three on the Judiciary Com-
mittee as he is—escalated the political intimi-
dation. “The Supreme Court is not well,” they
wrote in an amicus brief on a gun-regulation
case. “Perhaps the Court can heal itself before
the public demands it be ‘restructured in order
to reduce the influence of politics.’”
iii
What does “restructured” mean? It could
mean packing the Court by creating seats for
more than nine Justices. Democrats would have
to kill the Senate’s legislative filibuster so they
could pass legislation without 60 votes. But that
is what Senate Democrats did in 2013 to the fili-
buster rule for judicial nominees. They did so
in order to pack the D.C. Circuit Court of Ap-
peals with a liberal majority to protect Mr.
Obama’s aggressive use of regulation.
Why would anyone think Senate Democrats
wouldn’t do it again if they had the power? Eliz-
abeth Warren promised during her presidential
campaign to kill the legislative filibuster, and
the party’s left might insist on it. One reason
Mr. Schumer went off the deep end last week
is that he knows he may face a primary chal-
lenge in 2022 from Rep. Alexandria Ocasio-Cor-
tez. Would he stand in the way of the Senate left
on a filibuster change?
The Democratic goal here isn’t merely to re-
balance the courts with more liberal nominees
the democratic way. The goal is to intimidate
the judiciary into ruling the way Democrats
want—or else.

A Democratic majority


threatens judicial


independence.


An Antitrust Attack on Coal


D


emocrats have declared in no uncertain
terms they want to kill the coal indus-
try. They are receiving help from the
Federal Trade Commission, which has blocked
a joint venture between Arch Coal and Peabody
Energy.
Arch and Peabody last summer announced
plans to combine assets in Wyoming’s South Pow-
der River Basin to improve efficiency. Coal’s share
of U.S. electric generation has plunged to 24%
from 48% in 2008. While more regulation is one
culprit, utilities have also been replacing coal
with cheap natural gas and renewables.
Powder River Basin surface mines are more
productive than those in Appalachia, and their
coal also burns more cleanly. But a cascade of
coal plant retirements has put financial pres-
sure on producers. Although both Peabody and
Arch restructured in Chapter 11 bankruptcy four
years ago, they have continued to struggle amid
declining demand.
Hence their plan last summer to share equip-
ment, warehousing, rail transportation and
profits, which they claimed would improve “the
competitiveness of coal against natural gas and
renewables, while creating substantial value for
customers and shareholders.” Don’t they know
coal isn’t supposed to exist?
That may happen sooner if the FTC has its
way. The commission in late February filed a
complaint to block the joint venture. A “single
producer,” the FTC says, would have “a greater


incentive and ability to reduce output or in-
crease prices.” If Arch and Peabody decide to
reduce production, the FTC says their smaller
competitors could not compensate and power
plants would be stranded.
The FTC as usual is defining the competitive
market narrowly, excluding natural gas and re-
newables, as well as coal produced outside of
the Powder River Basin. In any case, Arch and
Peabody benefit from selling more coal. Why
would they reduce production? They would
hurt themselves if they made their customers
less competitive by raising prices.
Perhaps the FTC is worried about smaller
competitors? No. The FTC frets companies
would be emboldened to raise prices because
Powder Riven Basin producers face a “relatively
inelastic demand.” Really? Output from the ba-
sin has fallen by a third since 2008, and mines
are running at two-thirds capacity. Two large
Powder River Basin producers filed for bank-
ruptcy last year.
After the FTC sued to block the Arch-Pea-
body joint venture, Moody’s warned that it ex-
pects business conditions for coal producers in
the basin to remain “extremely challenging” be-
cause of “ongoing secular decline in the demand
for thermal coal.” It’s hard not to surmise the
FTC’s bureaucrats are doing the bidding of the
anti-coal climate lobby. The FTC is an indepen-
dent agency, but didn’t Donald Trump promise
to revive the coal industry?

The World’s Hardest Job


P


resident Trump dumped acting chief of
staff Mick Mulvaney late Friday evening
in favor of North Carolina Rep. Mark
Meadows, who will be the fourth White House
chief of his Presidency. By now Mr. Trump’s han-
dling of his leading aides resembles the way
Henry VIII treated his wives. He’s enthusiastic at
first, then sours on them for reasons known only
to the President, and the next thing you know the
guy is banished to Northern Ireland.
That’s where Mr. Mulvaney is going as a spe-
cial envoy, a slot the White House was trying
to fill for some time. It’s doubtful Mr. Mulvaney
was yearning for this opportunity.
Tumult in this White House is no surprise,
and Presidents are entitled to the advisers they
want. Mr. Trump is effectively his own chief of
staff, he hates to be tied to a daily schedule, and
he likes to keep his advisers on edge about their
jobs. He never removed Mr. Mulvaney’s “acting”
title despite 80-hour workweeks serving a diffi-
cult client.


Cabinet members live in fear of appearing
to have a sliver of public difference with Mr.
Trump on any issue lest they become persona
non grata. Appearing to upstage the President,
however unintentionally, can be fatal. Mr.
Trump has also had four national security ad-
visers in three years because he thinks of him-
self as his own chief strategist.
Mr. Trump’s partisans are saying the staff
change is part of his preparation for the elec-
tion campaign. But it’s hardly reassuring to the
public to sack the chief White House aide in the
middle of the coronavirus epidemic. It plays
into Joe Biden’s campaign theme, which is es-
sentially to stop the turmoil emanating from
1600 Pennsylvania Avenue.
Mr. Meadows has been a dogged defender of
the President, which is no doubt part of his ap-
peal. We wish Mr. Meadows luck, though we
suggest he not bring anything to his White
House office that he can’t take with him at the
close of any business day.

REVIEW & OUTLOOK


OPINION


Welch Pumped Up GE but Left Mixed Legacy


Regarding your editorial “The
House That Jack Welch Rebuilt”
(March 3): Jack Welch was, at once,
a managerial genius and an SOB. He
gave direct answers to direct ques-
tions. He neither prevaricated nor
minced. I’m a long-retired newspa-
perman, and I loved him for that.
When he was named GE CEO in
1981, I requested an interview and
was granted 30 minutes. Deal.
My one-on-one
interview with Jack
lasted nearly three
hours, driving his
press aide nearly
nuts. Jack and I
talked about myriad
things (when I
asked about GE’s
Utah International
acquisition, he
laughed, gave a
thumbs-down, si-
multaneously spat-
ting raspberries.
Jack was nothing if
not direct.)
He then asked
me about my kids.
When I got to my son Drew, a con-
firmed stutterer, Jack stopped me.
“I’m a stutterer.” We then talked, at
length, solely as ordinary folks.
That’s the Jack Welch I remember.
MIKEKALLAY
Louisville, Ky.

You point out that Welch cut costs
by firing the lowest 10% in each cate-
gory every year. That’s doom in a
high-tech company. Designing the
next generation of jet engines or

power-generation equipment re-
quires a great deal of trust and coop-
eration between engineers. His 10%
cutoff for survival destroyed cooper-
ation—what if you helped someone
and his elevation pushed you below
the survival threshold? Mr. Welch cut
costs by cutting back on R&D, which
was doom in a business which
needed competitive advantage to
earn high margins to support its ex-
pensive stateside
workforce. He cut
costs by eating the
seed corn. Not
good.
BILLTAYLOR
New Hampton, N.H.

I was living in a
neighborhood of GE
managers while
growing up, and
when young, freshly
minted manager
Jack Welch moved
in across the street,
he asked me to
mow his lawn. He
asked me how much
the other guys were paying me and I
told him $3.25. He told me: “I’ll pay
you $4 but I want my lawn to look
better than theirs.”I took the job and
absorbed a simple and memorable
primer about leveraging assets to
push results, a valuable Business 101
lesson for a 14-year-old. Whether it
was business, golf or lawns, Jack was
always an enthusiastic and efficient
competitor.
TERRYHOLLAND
Pittsfield, Mass.

The late Jack Welch of GE.

MIKE COPPOLA/GETTY IMAGES
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